Shore Bancshares, Inc. reported net income of $2.8 million for the first quarter of 2017, compared to net income of $2.495 million for the fourth quarter of 2016, and net income of $2.46 million for the first quarter of 2016.
Shore operates branch offices in central Delaware and a loan production office in Middletown.
The reason for the improved results was a $753,000 increase in noninterest income partially offset by an increase in noninterest expense of $427,000
“We are pleased to report our continuing improved earnings over the linked quarter and the first quarter of 2016,” said Lloyd L. “Scott” Beatty, Jr., CEO. “2017 is off to a great start as we outpaced loan growth goals for the quarter and increased deposits by $4.1 million, since December 31, 2016. The next few months will be an exciting time for Shore United Bank as we have already opened a new loan production office in West Ocean City, MD and will be expanding our market with three new branches in the greater metropolitan area of Baltimore, MD in May.”
The branches were acquired from Northwest Bank and expands the financial service company’s footprint beyond the Eastern Shore.
Total assets were $1.167 billion at March 31, 2017, a $6.6 million, or less than 1%, increase when compared to $1.160 billion at the end of 2016. The increase in total assets included increases in gross loans of $20.3 million and investment securities of $14.1 million, almost entirely funded by a decrease in interest-bearing deposits with other banks of $27.4 million.
The provision for credit losses was $427,000 thousand for the three months ended March 31, 2017. The comparable amounts were $418,000 and $450,000 for the three months ended December 31, 2016 and March 31, 2016, respectively.
The provision for credit losses slightly increased in the first quarter of 2017 over the fourth quarter of 2016, due to an increase in outstanding loans.
Nonperforming assets excluding accruing troubled debt restructurings (TDRs) were $11.2 million at March 31, 2017, $11.5 million at December 31, 2016 and $15.9 million at March 31, 2016
The decreases in nonperforming assets and TDRs are the result of the continued work out efforts and charge-offs period over period.
Total noninterest income for the first quarter of 2017 increased $753,000 when compared to the fourth quarter of 2016 and increased $268,000 when compared to the first quarter of 2016. The increase from the fourth quarter of 2016 was the result of higher insurance agency commissions
Shore Bancshares, Inc. is a financial holding company headquartered in Easton, MD and is the largest independent bank holding company located on Maryland’s Eastern Shore.
